Is it a good time to replace my used car

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We have a 2005 Chevy Impala with 105,000 miles that we purchased in 2011. We have made many repairs such as replacing the transmission, repairing the radiator, heating and AC system, thermostat, belt, rotors and brake pads, alternator, gaskets, and we are now facing an $800 repair for the fuel tank.



The average cost of repair has been about $1470 per year since the beginning of 2015 if I include the pending $800 cost to repair the fuel tank. The transmission disproportionately weighted the average since it cost $2000.



Since we have a good credit rating, at a cost of about $1470 per year for repairs for this car, does it make sense to get rid of this car and either buy or lease a new comparable car? I am asking about this from a cost perspective and ignoring any other advantages that a new car may offer.










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  • 2




    Do you still owe anything on the Impala? If so, what are the payments?
    – JohnFx♦
    yesterday






  • 1




    There are no payments
    – agblt
    yesterday






  • 3




    has the car left you stranded? even if it didn't leave you stranded was the loss of use of the car during the repair a major impact on your transportation.
    – mhoran_psprep
    yesterday






  • 1




    It has been inconvenient at times, but luckily most repairs were quick as we have a good mobile mechanic who comes to our house, and we do not use it for very long distances, so I would not say it has had a major impact
    – agblt
    yesterday







  • 4




    I'm not sure "average cost" is a good measure here - that's useful if the costs sometimes go up and sometimes come down, but tend to hover around the mean. With old cars, the curve tends to look exponential - it just goes up.
    – Lawrence
    yesterday
















up vote
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down vote

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We have a 2005 Chevy Impala with 105,000 miles that we purchased in 2011. We have made many repairs such as replacing the transmission, repairing the radiator, heating and AC system, thermostat, belt, rotors and brake pads, alternator, gaskets, and we are now facing an $800 repair for the fuel tank.



The average cost of repair has been about $1470 per year since the beginning of 2015 if I include the pending $800 cost to repair the fuel tank. The transmission disproportionately weighted the average since it cost $2000.



Since we have a good credit rating, at a cost of about $1470 per year for repairs for this car, does it make sense to get rid of this car and either buy or lease a new comparable car? I am asking about this from a cost perspective and ignoring any other advantages that a new car may offer.










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  • 2




    Do you still owe anything on the Impala? If so, what are the payments?
    – JohnFx♦
    yesterday






  • 1




    There are no payments
    – agblt
    yesterday






  • 3




    has the car left you stranded? even if it didn't leave you stranded was the loss of use of the car during the repair a major impact on your transportation.
    – mhoran_psprep
    yesterday






  • 1




    It has been inconvenient at times, but luckily most repairs were quick as we have a good mobile mechanic who comes to our house, and we do not use it for very long distances, so I would not say it has had a major impact
    – agblt
    yesterday







  • 4




    I'm not sure "average cost" is a good measure here - that's useful if the costs sometimes go up and sometimes come down, but tend to hover around the mean. With old cars, the curve tends to look exponential - it just goes up.
    – Lawrence
    yesterday












up vote
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We have a 2005 Chevy Impala with 105,000 miles that we purchased in 2011. We have made many repairs such as replacing the transmission, repairing the radiator, heating and AC system, thermostat, belt, rotors and brake pads, alternator, gaskets, and we are now facing an $800 repair for the fuel tank.



The average cost of repair has been about $1470 per year since the beginning of 2015 if I include the pending $800 cost to repair the fuel tank. The transmission disproportionately weighted the average since it cost $2000.



Since we have a good credit rating, at a cost of about $1470 per year for repairs for this car, does it make sense to get rid of this car and either buy or lease a new comparable car? I am asking about this from a cost perspective and ignoring any other advantages that a new car may offer.










share|improve this question









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We have a 2005 Chevy Impala with 105,000 miles that we purchased in 2011. We have made many repairs such as replacing the transmission, repairing the radiator, heating and AC system, thermostat, belt, rotors and brake pads, alternator, gaskets, and we are now facing an $800 repair for the fuel tank.



The average cost of repair has been about $1470 per year since the beginning of 2015 if I include the pending $800 cost to repair the fuel tank. The transmission disproportionately weighted the average since it cost $2000.



Since we have a good credit rating, at a cost of about $1470 per year for repairs for this car, does it make sense to get rid of this car and either buy or lease a new comparable car? I am asking about this from a cost perspective and ignoring any other advantages that a new car may offer.







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  • 2




    Do you still owe anything on the Impala? If so, what are the payments?
    – JohnFx♦
    yesterday






  • 1




    There are no payments
    – agblt
    yesterday






  • 3




    has the car left you stranded? even if it didn't leave you stranded was the loss of use of the car during the repair a major impact on your transportation.
    – mhoran_psprep
    yesterday






  • 1




    It has been inconvenient at times, but luckily most repairs were quick as we have a good mobile mechanic who comes to our house, and we do not use it for very long distances, so I would not say it has had a major impact
    – agblt
    yesterday







  • 4




    I'm not sure "average cost" is a good measure here - that's useful if the costs sometimes go up and sometimes come down, but tend to hover around the mean. With old cars, the curve tends to look exponential - it just goes up.
    – Lawrence
    yesterday












  • 2




    Do you still owe anything on the Impala? If so, what are the payments?
    – JohnFx♦
    yesterday






  • 1




    There are no payments
    – agblt
    yesterday






  • 3




    has the car left you stranded? even if it didn't leave you stranded was the loss of use of the car during the repair a major impact on your transportation.
    – mhoran_psprep
    yesterday






  • 1




    It has been inconvenient at times, but luckily most repairs were quick as we have a good mobile mechanic who comes to our house, and we do not use it for very long distances, so I would not say it has had a major impact
    – agblt
    yesterday







  • 4




    I'm not sure "average cost" is a good measure here - that's useful if the costs sometimes go up and sometimes come down, but tend to hover around the mean. With old cars, the curve tends to look exponential - it just goes up.
    – Lawrence
    yesterday







2




2




Do you still owe anything on the Impala? If so, what are the payments?
– JohnFx♦
yesterday




Do you still owe anything on the Impala? If so, what are the payments?
– JohnFx♦
yesterday




1




1




There are no payments
– agblt
yesterday




There are no payments
– agblt
yesterday




3




3




has the car left you stranded? even if it didn't leave you stranded was the loss of use of the car during the repair a major impact on your transportation.
– mhoran_psprep
yesterday




has the car left you stranded? even if it didn't leave you stranded was the loss of use of the car during the repair a major impact on your transportation.
– mhoran_psprep
yesterday




1




1




It has been inconvenient at times, but luckily most repairs were quick as we have a good mobile mechanic who comes to our house, and we do not use it for very long distances, so I would not say it has had a major impact
– agblt
yesterday





It has been inconvenient at times, but luckily most repairs were quick as we have a good mobile mechanic who comes to our house, and we do not use it for very long distances, so I would not say it has had a major impact
– agblt
yesterday





4




4




I'm not sure "average cost" is a good measure here - that's useful if the costs sometimes go up and sometimes come down, but tend to hover around the mean. With old cars, the curve tends to look exponential - it just goes up.
– Lawrence
yesterday




I'm not sure "average cost" is a good measure here - that's useful if the costs sometimes go up and sometimes come down, but tend to hover around the mean. With old cars, the curve tends to look exponential - it just goes up.
– Lawrence
yesterday










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While ultimately this is a matter of opinion, the major factors in this decision are the cost of what you'll replace it with and how important reliable transportation is to you.



$1470/year is not an incredible sum to keep a car on the road. Any newer car will also have maintenance and repair costs, higher insurance cost (most likely) and either require a significant cash outlay or new monthly car payments.



You've also hit one of the biggest repairs in the transmission, a rebuilt transmission should last at least 30k miles. So barring complete engine failure you could have a few more years of relatively low total cost of ownership. I'd probably have a mechanic inspect it and give you an idea of how much you might have to spend in the near future or how likely the car is to last you a while longer.



Then it's just a matter of deciding if the extra costs of something newer are worth it at this point, or if it makes sense to keep your paid off car kicking along.



Leasing is typically not a great option financially, buying a 2-3 year old used car tends to be the sweet spot, many of which still have time left on the manufacturers warranty which doesn't cover everything typically but can help with the big ticket items.






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  • 8




    As you've noted, OP's average is not representative; having to replace a transmission is not a normal thing, and unless the shop put in a really badly rebuilt one or substandard replacement, I would expect it to last 100k miles at least, not just 30k. Without the transmission it's more like $800 a year, which is a lot less than what you'd pay just for the added cost of insuring a new car (assuming you need full coverage, which you will if you lease or buy on a loan).
    – R..
    yesterday






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    In addition you should be able to get that down a lot by getting a little bit more savvy about cars. $800 for a fuel tank sounds significantly overpriced. It's only about $100 in parts, and a good rule of thumb is to expect car repairs to break down about 50-50 between parts and labor. Here it might be a bit labor-intensive, but over $400 is absurd.
    – R..
    yesterday






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    @R.. Yeah 30k is about the minimum on a rebuilt transmission, agreed they should last much longer, I've known too many people for whom they didn't unfortunately, and warranties are little help given high labor costs.
    – Hart CO
    yesterday






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    A handful of the payments OP talked about are wear and tear items as well, and I don't think they should be included in the final estimate. Those being: Belts, rotors, pads, alternator and gaskets. As for his fuel tank, I agree with @R..; they are usually about $100-150 in parts brand new. Tanks are relatively easy to change as well. I think OP should consider shopping around for a better mechanic that isn't trying to price gouge.
    – knocked loose
    yesterday






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    I would like to point out that a new car lease might have less maintenance. In the case of my nissan leaf, I have had zero maintenance for 4 years. With monthly payments of $120/month
    – Gabriel Fair
    3 hours ago


















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Here's one option - figure out how much of a car payment you can afford, and start saving that today. Take your repair costs out of that fund. Continue saving until you have enough to and buy a used car with cash.



I would not lease. Leasing is a way to make expensive cars affordable for a short period of time, but you get nothing else in return (it is essentially renting the car).






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  • But how do I know that any other used car won't have the same issues I am having now? Meaning, why would it be an advantage to get another used car over the used car I have now?
    – agblt
    yesterday











  • @agbit You get a mechanic to check it out before buying it.
    – Lawrence
    yesterday






  • 2




    My experience is that a 2-3 year old car with average mileage (30-60k) gives you the best balance of affordability and reliability.
    – D Stanley
    yesterday






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    @KaiQing you can deduct mileage or depreciation if you don't lease, which may be more than the deduction for the lease payment.
    – D Stanley
    yesterday






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    Thats exactly what I'm doing, people have been telling me for the last several years to get a new car to replace my 2004 with 180K miles on it - she almost never needs repairs and I've only put about 3,000 in repairs into it over the years with 2k being because I forgot to change the timing belt, it went and bent some rods and valves. So as you said - I'm driving her till at least 200K or longer and starting to save 250-500$ a month towards the new car.
    – JGlass
    23 hours ago

















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Cars are certainly a money suck, but sometimes the cost to the individual is well hidden. The most common and costly example of this is the loss of value when one purchases a new car. One can expect to lose about 5k per year (minimum) when one purchases a new car. More would be lost if that purchase is financed. In comparison, 1500/year is "small potatoes".



IMHO it is foolish to buy a new car without significant assets. The growth of those assets counteract the depreciation one experiences when owning a new car. A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord.



IMHO it is also foolish to obtain a loan for a car. Sure some people play the interest arbitrage game where they could pay cash but opt to finance because of a low teaser rate. If you have the full amount in savings and can earn more than the car loan, I guess I am okay with it, but that situation is mostly uncommon.



So how much money do you have to buy a different car? That would really dictate the answer. If you have 10K saved, I would fix your car for the $800, sell it and buy something newer. If you have less, then I would be tempted to keep your current car. Buying something for less may cause you to inherit a different set of problems. You might come across a really good deal for something less and in that case I might purchase that car. However, as a general rule, I would want to move up in quality, save some more, and then repeat the process.



And as others have said, leasing is an even more costly way to own a car then just buying new with a loan. Again it is just a way to disguise the cost of driving something fancy.



You could be normal and just go out and get yourself a car loan and a car. However, remember that normal is broke. Most people do not have money. One of those reasons is the financing of new or nearly new cars.






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  • 21




    "A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord." I don't think it's necessary to have a half million dollars in assets to purchase one of the top ten bestselling vehicles in the US.
    – Our_Benefactors
    yesterday






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    @Our_Benefactors the majority of people would agree with you.
    – Pete B.
    yesterday






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    @Our_Benefactors Agreed, that sentence is absolutely absurd.
    – MonkeyZeus
    yesterday






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    This is just one of many articles that may vary in detail, but generally indicate the same thing, and this is why "the majority agree": gobankingrates.com/saving-money/savings-advice/… Short story: Most spend way beyond their means. The Majority may not really be very sensible. Yes, "normal is broke."
    – mickeyf
    23 hours ago






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    @Fattie what a bizarre argument. Cars are self-evidently not worthless, and if you really thought they had no more value than a t-shirt then you wouldn't have volunteered t-shirts as an illustration. In any case, since almost all cars depreciate ultimately to zero, the idea that you can have a rule of thumb of assets to offset with is itself financially irresponsible. Any pattern of car ownership is a time-bounded expense to be funded by income, which may or may not be sourced from investment returns.
    – Will
    5 hours ago

















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Call your insurance agent and see what Total Loss Claim would pay out.
If the vehicle is worth more than the yearly cost of repairs (in your case $1470) suck it up, pay for the repair, and start saving for a new car.



If your insurance company can't give you a firm number of a Total Loss claim, The Kelly Blue Book value of the vehicle is likely a decent estimate (but no promises).



If it is not worth at least $1470 to the insurance company, then you will need to buy another car. The reason you should buy/lease/finance another car is simple. If you total your current car in an accident on the way home from the repair shop, and the insurance company doesn't settle your claim at $1470 or more, then you are now $1470 - settlement dollars poorer and car-less.



Always make sure yearly repair cost are not close to or more than the value of your car



P.S.



$1470 sounds a bit high for average yearly repairs. Being car-less also cost in either convince (i.e you and your SO have to carpool to and from work), or actual cost of renting a car. Be sure to factor these cost into the $1470 number. Especially if your job requires frequent travel by car, it might be time to buy a more reliable car for that reason alone.






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  • Why make the cost-benefit analysis based on the yearly repair costs?
    – Edge
    13 hours ago










  • Forking over $1400 a year is $116 a month (1400/12), that's much less than a car payment would be. The average car payment is $523/month. Especially if the car is not worth much, you also need to consider the insurance payout.
    – sevensevens
    6 hours ago


















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Spreading out the cost of a car is a good idea, because most of us don't get paid the cost of a vehicle in a single paycheck. However, paying interest on a depreciating asset isn't a good move from a financial perspective. Leasing generally only makes sense for businesses who can get some tax advantages and smooth out their costs, though a lease is not a good value for the leasee.



The best way to buy a car from where you are today, is to make payments to a car fund now. This fund is your car budget. You save until you can afford the car you need or want. The reason this makes sense is most visible when you do the math.



Car loan scenario:



  • Car: 3 year old sedan with low miles in excellent condition

  • Cost: $15,000

  • Down: $0

  • Term: 5 years

  • Interest: 5%

  • Payment: $283.07

  • Total Cost: $16984.11

Car savings scenario:



  • Start: $0

  • Monthly: $283.07

  • Term: 5 years

  • Interest: 1%

  • Total Value: $17,408.54

There will probably be comments about inflation and in the loan scenario you are driving a nicer car sooner and for longer and you can get more for your current car now, etc. Those points have some validity. You can partially offset inflation with an investment other than a simple savings account. The first 5 years are actually the hardest and least beneficial. The larger value of the savings approach is seen when applied over a lifetime rather than just a 5 year period. Once you complete the first cycle, you're selling a 7-8 year old car and buying a 2-3 year old car every 5 years for about $2500 less each cycle.



What also shouldn't be overlooked is the greatest value of the savings approach: life will happen during the next 5 years. What are the chances that the average individual will face some type of financial reversal, such as a job loss, need a major home repair, suffer a temporary disability or have significant medical expenses in any given 5 year period? If you are saving, you can simply put that on hold until the situation is resolved. Worst case, you can draw on those funds to resolve the crisis. If you are making payments, you will probably have to sell the car or have it repossessed. The car savings insulates you to a degree from financial misfortune, which means you are more financially stable and have greater peace of mind.






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    You have two separate questions here: "...get rid of this car and either buy or lease a new comparable car..."



    Getting rid of this car would seem to be a definite yes. I find it hard to believe that ANY car, especially one with such low mileage, would require the level of repairs that you've experienced. Other than the normal maintenance items like brake pads, I'd be surprised to encounter one or two significant problems in a decade. Things like replacing transmissions & fuel tanks just shouldn't happen, period. So it seems you have a lemon, and junking it is the best option.



    Now as to getting a COMPARABLE new car... Well, other questions here deal with the economics of new cars, so I won't repeat them. But in getting your new vehicle, look at information on reliability. Then get a Honda, Toyota, or perhaps Mazda or Subaru.






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      Your question simply has two parts, both of which are easily answered



      (1) Buying a new car is so far from the realm of fiscal sanity, that you can just totally dismiss it.



      It's not even in the ballpark of reality - forget it.



      Before going even any further, note that the insurance you must have on a new purchased/leased will crush your financial life.



      On that - it is perhaps best to dismiss any answers on this page which don't mention the insurance issue on car purchases/leasing - one of the primary reasons "new cars are insanity".



      My rough calculation is always that: sure, as an absolute luxury for high earners, it's fine to throw away money on a new car. In short, don't even think of a brand-new car unless your family income is over US$350,000 a year.



      (2) Regarding your current car. It's only 13 years old and has no mileage.



      With modern technology (and this is incredible) cars as new as yours and with as little mileage as yours, drive exactly the same as a brand new car which just rolled off the assembly line.



      For example, one of our cars is a 15? yr old Toyota minivan which has 250000? miles. I paid a few thousand $ for it. It drives literally exactly the same as a new Sienna just off the assembly line. Exactly the same - literally EXACTLY as reliable, smooth, fast and quiet. The only advantage of me walking in to a dealer and buying a new $50,000 Sienna would be that .. it has been washed. Siennas are perhaps the best-engineered vehicle ever, but this applies to all modern vehicles - we live in amazing times for cars.



      Indeed as a curiosity, an acquaintance bought a recent model Sienna for $25,000 and it happened to need a $1500 repair in the first year. Our one needed a $600 repair in the same year. Recall that my one is utterly, absolutely, perfectly, identical in terms of speed, reliability, quietness, smoothness and luxury crap. Hence, friend threw away $23,000 (could have bought my one for $2000) and (by bad luck) $900 on repairs. Admittedly, friend's one is, or at least was for a few weeks, extremely clean. (The dealers wash used cars before they sell them.) Also, friend happened to scratch the back of his one. My one has a scratch, but it's a smaller scratch.



      So for better or worse you can dismiss the idea that another car you buy will be "generally better".



      1. Your car drives as-new, the next one you buy will drive as-new, and

      2. the cost of repairs is unfortunately down to luck.

      It is true that some cars are "just bad luck" and you seem to be forever repairing them.



      So, it could be that you are unfortunately spending a bit much each year on the Impala - you're spending say 2000 a year whereas if you have a "good luck" car there's only 500 or 100 a year in repairs.



      That will happen. It's random. Unfortunately there is just nothing you can do about that.



      Unfortunately too, you suffer the "better the devil you know" factor. If you dump your car and buy another similar car (for say $4000 .. whatever), maybe it will never have a repair, or maybe something will go the first week. Unfortunately, it's impossible to guess.



      Purely FWIW as a "car guy guess", I personally would dump this Impala, and buy some new used car (for, say, 4000 - 4500 bucks).



      But many, many people would say "800 for a fuel tank, so what? pay it and you have a new fuel tank!"






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        If all you care about is the math, this is a relatively simple matter to work out.



        First, you need to estimate your annual expenditure on your current vehicle, including insurance, fuel and repairs. Let's imagine $500 for insurance, and your $1,470 for repairs. Fuel we'll estimate at 10,000 miles, 22mpg, and $2.87 per gallon, which is $1,304 per year. The total cost is therefore $3,274 per year.



        Then, do the same for the replacement vehicle. Let's assume slightly higher insurance ($600), but fewer repairs ($300). Let's say you get a 25mpg vehicle this time, giving a fuel cost of $1,148, and a total cost of $2,048 per year.



        The new vehicle should therefore save you around $1,226 per year — however, you have to pay for it!



        So estimate how long you think the new vehicle will last. Let's estimate 100,000 miles. So if you do 10,000 miles per year, and the new car has 30,000 miles on the clock, you can guess it will last seven years. If such a vehicle cost $7,000 that's equivalent to $1,000 per year. If you need to borrow to make the purchase, you'll have to add on interest, of course.



        In this scenario, spending $1,000 this year to save $1,226 is certainly worthwhile. In fact, if the new vehicle costs up to $8,500 (7 x $1,226), you'll be better off.



        There's obviously lots of estimates involved, but that's the nature of trying to predict the future. When I'm buying a new car, I create a spreadsheet with all this data, including on the existing car, before making my decision. It's quite quick to calculate once the spreadsheet is set up.






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          8 Answers
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          up vote
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          While ultimately this is a matter of opinion, the major factors in this decision are the cost of what you'll replace it with and how important reliable transportation is to you.



          $1470/year is not an incredible sum to keep a car on the road. Any newer car will also have maintenance and repair costs, higher insurance cost (most likely) and either require a significant cash outlay or new monthly car payments.



          You've also hit one of the biggest repairs in the transmission, a rebuilt transmission should last at least 30k miles. So barring complete engine failure you could have a few more years of relatively low total cost of ownership. I'd probably have a mechanic inspect it and give you an idea of how much you might have to spend in the near future or how likely the car is to last you a while longer.



          Then it's just a matter of deciding if the extra costs of something newer are worth it at this point, or if it makes sense to keep your paid off car kicking along.



          Leasing is typically not a great option financially, buying a 2-3 year old used car tends to be the sweet spot, many of which still have time left on the manufacturers warranty which doesn't cover everything typically but can help with the big ticket items.






          share|improve this answer


















          • 8




            As you've noted, OP's average is not representative; having to replace a transmission is not a normal thing, and unless the shop put in a really badly rebuilt one or substandard replacement, I would expect it to last 100k miles at least, not just 30k. Without the transmission it's more like $800 a year, which is a lot less than what you'd pay just for the added cost of insuring a new car (assuming you need full coverage, which you will if you lease or buy on a loan).
            – R..
            yesterday






          • 3




            In addition you should be able to get that down a lot by getting a little bit more savvy about cars. $800 for a fuel tank sounds significantly overpriced. It's only about $100 in parts, and a good rule of thumb is to expect car repairs to break down about 50-50 between parts and labor. Here it might be a bit labor-intensive, but over $400 is absurd.
            – R..
            yesterday






          • 1




            @R.. Yeah 30k is about the minimum on a rebuilt transmission, agreed they should last much longer, I've known too many people for whom they didn't unfortunately, and warranties are little help given high labor costs.
            – Hart CO
            yesterday






          • 3




            A handful of the payments OP talked about are wear and tear items as well, and I don't think they should be included in the final estimate. Those being: Belts, rotors, pads, alternator and gaskets. As for his fuel tank, I agree with @R..; they are usually about $100-150 in parts brand new. Tanks are relatively easy to change as well. I think OP should consider shopping around for a better mechanic that isn't trying to price gouge.
            – knocked loose
            yesterday






          • 1




            I would like to point out that a new car lease might have less maintenance. In the case of my nissan leaf, I have had zero maintenance for 4 years. With monthly payments of $120/month
            – Gabriel Fair
            3 hours ago















          up vote
          27
          down vote



          accepted










          While ultimately this is a matter of opinion, the major factors in this decision are the cost of what you'll replace it with and how important reliable transportation is to you.



          $1470/year is not an incredible sum to keep a car on the road. Any newer car will also have maintenance and repair costs, higher insurance cost (most likely) and either require a significant cash outlay or new monthly car payments.



          You've also hit one of the biggest repairs in the transmission, a rebuilt transmission should last at least 30k miles. So barring complete engine failure you could have a few more years of relatively low total cost of ownership. I'd probably have a mechanic inspect it and give you an idea of how much you might have to spend in the near future or how likely the car is to last you a while longer.



          Then it's just a matter of deciding if the extra costs of something newer are worth it at this point, or if it makes sense to keep your paid off car kicking along.



          Leasing is typically not a great option financially, buying a 2-3 year old used car tends to be the sweet spot, many of which still have time left on the manufacturers warranty which doesn't cover everything typically but can help with the big ticket items.






          share|improve this answer


















          • 8




            As you've noted, OP's average is not representative; having to replace a transmission is not a normal thing, and unless the shop put in a really badly rebuilt one or substandard replacement, I would expect it to last 100k miles at least, not just 30k. Without the transmission it's more like $800 a year, which is a lot less than what you'd pay just for the added cost of insuring a new car (assuming you need full coverage, which you will if you lease or buy on a loan).
            – R..
            yesterday






          • 3




            In addition you should be able to get that down a lot by getting a little bit more savvy about cars. $800 for a fuel tank sounds significantly overpriced. It's only about $100 in parts, and a good rule of thumb is to expect car repairs to break down about 50-50 between parts and labor. Here it might be a bit labor-intensive, but over $400 is absurd.
            – R..
            yesterday






          • 1




            @R.. Yeah 30k is about the minimum on a rebuilt transmission, agreed they should last much longer, I've known too many people for whom they didn't unfortunately, and warranties are little help given high labor costs.
            – Hart CO
            yesterday






          • 3




            A handful of the payments OP talked about are wear and tear items as well, and I don't think they should be included in the final estimate. Those being: Belts, rotors, pads, alternator and gaskets. As for his fuel tank, I agree with @R..; they are usually about $100-150 in parts brand new. Tanks are relatively easy to change as well. I think OP should consider shopping around for a better mechanic that isn't trying to price gouge.
            – knocked loose
            yesterday






          • 1




            I would like to point out that a new car lease might have less maintenance. In the case of my nissan leaf, I have had zero maintenance for 4 years. With monthly payments of $120/month
            – Gabriel Fair
            3 hours ago













          up vote
          27
          down vote



          accepted







          up vote
          27
          down vote



          accepted






          While ultimately this is a matter of opinion, the major factors in this decision are the cost of what you'll replace it with and how important reliable transportation is to you.



          $1470/year is not an incredible sum to keep a car on the road. Any newer car will also have maintenance and repair costs, higher insurance cost (most likely) and either require a significant cash outlay or new monthly car payments.



          You've also hit one of the biggest repairs in the transmission, a rebuilt transmission should last at least 30k miles. So barring complete engine failure you could have a few more years of relatively low total cost of ownership. I'd probably have a mechanic inspect it and give you an idea of how much you might have to spend in the near future or how likely the car is to last you a while longer.



          Then it's just a matter of deciding if the extra costs of something newer are worth it at this point, or if it makes sense to keep your paid off car kicking along.



          Leasing is typically not a great option financially, buying a 2-3 year old used car tends to be the sweet spot, many of which still have time left on the manufacturers warranty which doesn't cover everything typically but can help with the big ticket items.






          share|improve this answer














          While ultimately this is a matter of opinion, the major factors in this decision are the cost of what you'll replace it with and how important reliable transportation is to you.



          $1470/year is not an incredible sum to keep a car on the road. Any newer car will also have maintenance and repair costs, higher insurance cost (most likely) and either require a significant cash outlay or new monthly car payments.



          You've also hit one of the biggest repairs in the transmission, a rebuilt transmission should last at least 30k miles. So barring complete engine failure you could have a few more years of relatively low total cost of ownership. I'd probably have a mechanic inspect it and give you an idea of how much you might have to spend in the near future or how likely the car is to last you a while longer.



          Then it's just a matter of deciding if the extra costs of something newer are worth it at this point, or if it makes sense to keep your paid off car kicking along.



          Leasing is typically not a great option financially, buying a 2-3 year old used car tends to be the sweet spot, many of which still have time left on the manufacturers warranty which doesn't cover everything typically but can help with the big ticket items.







          share|improve this answer














          share|improve this answer



          share|improve this answer








          edited yesterday

























          answered yesterday









          Hart CO

          22.5k15568




          22.5k15568







          • 8




            As you've noted, OP's average is not representative; having to replace a transmission is not a normal thing, and unless the shop put in a really badly rebuilt one or substandard replacement, I would expect it to last 100k miles at least, not just 30k. Without the transmission it's more like $800 a year, which is a lot less than what you'd pay just for the added cost of insuring a new car (assuming you need full coverage, which you will if you lease or buy on a loan).
            – R..
            yesterday






          • 3




            In addition you should be able to get that down a lot by getting a little bit more savvy about cars. $800 for a fuel tank sounds significantly overpriced. It's only about $100 in parts, and a good rule of thumb is to expect car repairs to break down about 50-50 between parts and labor. Here it might be a bit labor-intensive, but over $400 is absurd.
            – R..
            yesterday






          • 1




            @R.. Yeah 30k is about the minimum on a rebuilt transmission, agreed they should last much longer, I've known too many people for whom they didn't unfortunately, and warranties are little help given high labor costs.
            – Hart CO
            yesterday






          • 3




            A handful of the payments OP talked about are wear and tear items as well, and I don't think they should be included in the final estimate. Those being: Belts, rotors, pads, alternator and gaskets. As for his fuel tank, I agree with @R..; they are usually about $100-150 in parts brand new. Tanks are relatively easy to change as well. I think OP should consider shopping around for a better mechanic that isn't trying to price gouge.
            – knocked loose
            yesterday






          • 1




            I would like to point out that a new car lease might have less maintenance. In the case of my nissan leaf, I have had zero maintenance for 4 years. With monthly payments of $120/month
            – Gabriel Fair
            3 hours ago













          • 8




            As you've noted, OP's average is not representative; having to replace a transmission is not a normal thing, and unless the shop put in a really badly rebuilt one or substandard replacement, I would expect it to last 100k miles at least, not just 30k. Without the transmission it's more like $800 a year, which is a lot less than what you'd pay just for the added cost of insuring a new car (assuming you need full coverage, which you will if you lease or buy on a loan).
            – R..
            yesterday






          • 3




            In addition you should be able to get that down a lot by getting a little bit more savvy about cars. $800 for a fuel tank sounds significantly overpriced. It's only about $100 in parts, and a good rule of thumb is to expect car repairs to break down about 50-50 between parts and labor. Here it might be a bit labor-intensive, but over $400 is absurd.
            – R..
            yesterday






          • 1




            @R.. Yeah 30k is about the minimum on a rebuilt transmission, agreed they should last much longer, I've known too many people for whom they didn't unfortunately, and warranties are little help given high labor costs.
            – Hart CO
            yesterday






          • 3




            A handful of the payments OP talked about are wear and tear items as well, and I don't think they should be included in the final estimate. Those being: Belts, rotors, pads, alternator and gaskets. As for his fuel tank, I agree with @R..; they are usually about $100-150 in parts brand new. Tanks are relatively easy to change as well. I think OP should consider shopping around for a better mechanic that isn't trying to price gouge.
            – knocked loose
            yesterday






          • 1




            I would like to point out that a new car lease might have less maintenance. In the case of my nissan leaf, I have had zero maintenance for 4 years. With monthly payments of $120/month
            – Gabriel Fair
            3 hours ago








          8




          8




          As you've noted, OP's average is not representative; having to replace a transmission is not a normal thing, and unless the shop put in a really badly rebuilt one or substandard replacement, I would expect it to last 100k miles at least, not just 30k. Without the transmission it's more like $800 a year, which is a lot less than what you'd pay just for the added cost of insuring a new car (assuming you need full coverage, which you will if you lease or buy on a loan).
          – R..
          yesterday




          As you've noted, OP's average is not representative; having to replace a transmission is not a normal thing, and unless the shop put in a really badly rebuilt one or substandard replacement, I would expect it to last 100k miles at least, not just 30k. Without the transmission it's more like $800 a year, which is a lot less than what you'd pay just for the added cost of insuring a new car (assuming you need full coverage, which you will if you lease or buy on a loan).
          – R..
          yesterday




          3




          3




          In addition you should be able to get that down a lot by getting a little bit more savvy about cars. $800 for a fuel tank sounds significantly overpriced. It's only about $100 in parts, and a good rule of thumb is to expect car repairs to break down about 50-50 between parts and labor. Here it might be a bit labor-intensive, but over $400 is absurd.
          – R..
          yesterday




          In addition you should be able to get that down a lot by getting a little bit more savvy about cars. $800 for a fuel tank sounds significantly overpriced. It's only about $100 in parts, and a good rule of thumb is to expect car repairs to break down about 50-50 between parts and labor. Here it might be a bit labor-intensive, but over $400 is absurd.
          – R..
          yesterday




          1




          1




          @R.. Yeah 30k is about the minimum on a rebuilt transmission, agreed they should last much longer, I've known too many people for whom they didn't unfortunately, and warranties are little help given high labor costs.
          – Hart CO
          yesterday




          @R.. Yeah 30k is about the minimum on a rebuilt transmission, agreed they should last much longer, I've known too many people for whom they didn't unfortunately, and warranties are little help given high labor costs.
          – Hart CO
          yesterday




          3




          3




          A handful of the payments OP talked about are wear and tear items as well, and I don't think they should be included in the final estimate. Those being: Belts, rotors, pads, alternator and gaskets. As for his fuel tank, I agree with @R..; they are usually about $100-150 in parts brand new. Tanks are relatively easy to change as well. I think OP should consider shopping around for a better mechanic that isn't trying to price gouge.
          – knocked loose
          yesterday




          A handful of the payments OP talked about are wear and tear items as well, and I don't think they should be included in the final estimate. Those being: Belts, rotors, pads, alternator and gaskets. As for his fuel tank, I agree with @R..; they are usually about $100-150 in parts brand new. Tanks are relatively easy to change as well. I think OP should consider shopping around for a better mechanic that isn't trying to price gouge.
          – knocked loose
          yesterday




          1




          1




          I would like to point out that a new car lease might have less maintenance. In the case of my nissan leaf, I have had zero maintenance for 4 years. With monthly payments of $120/month
          – Gabriel Fair
          3 hours ago





          I would like to point out that a new car lease might have less maintenance. In the case of my nissan leaf, I have had zero maintenance for 4 years. With monthly payments of $120/month
          – Gabriel Fair
          3 hours ago













          up vote
          8
          down vote













          Here's one option - figure out how much of a car payment you can afford, and start saving that today. Take your repair costs out of that fund. Continue saving until you have enough to and buy a used car with cash.



          I would not lease. Leasing is a way to make expensive cars affordable for a short period of time, but you get nothing else in return (it is essentially renting the car).






          share|improve this answer




















          • But how do I know that any other used car won't have the same issues I am having now? Meaning, why would it be an advantage to get another used car over the used car I have now?
            – agblt
            yesterday











          • @agbit You get a mechanic to check it out before buying it.
            – Lawrence
            yesterday






          • 2




            My experience is that a 2-3 year old car with average mileage (30-60k) gives you the best balance of affordability and reliability.
            – D Stanley
            yesterday






          • 1




            @KaiQing you can deduct mileage or depreciation if you don't lease, which may be more than the deduction for the lease payment.
            – D Stanley
            yesterday






          • 2




            Thats exactly what I'm doing, people have been telling me for the last several years to get a new car to replace my 2004 with 180K miles on it - she almost never needs repairs and I've only put about 3,000 in repairs into it over the years with 2k being because I forgot to change the timing belt, it went and bent some rods and valves. So as you said - I'm driving her till at least 200K or longer and starting to save 250-500$ a month towards the new car.
            – JGlass
            23 hours ago














          up vote
          8
          down vote













          Here's one option - figure out how much of a car payment you can afford, and start saving that today. Take your repair costs out of that fund. Continue saving until you have enough to and buy a used car with cash.



          I would not lease. Leasing is a way to make expensive cars affordable for a short period of time, but you get nothing else in return (it is essentially renting the car).






          share|improve this answer




















          • But how do I know that any other used car won't have the same issues I am having now? Meaning, why would it be an advantage to get another used car over the used car I have now?
            – agblt
            yesterday











          • @agbit You get a mechanic to check it out before buying it.
            – Lawrence
            yesterday






          • 2




            My experience is that a 2-3 year old car with average mileage (30-60k) gives you the best balance of affordability and reliability.
            – D Stanley
            yesterday






          • 1




            @KaiQing you can deduct mileage or depreciation if you don't lease, which may be more than the deduction for the lease payment.
            – D Stanley
            yesterday






          • 2




            Thats exactly what I'm doing, people have been telling me for the last several years to get a new car to replace my 2004 with 180K miles on it - she almost never needs repairs and I've only put about 3,000 in repairs into it over the years with 2k being because I forgot to change the timing belt, it went and bent some rods and valves. So as you said - I'm driving her till at least 200K or longer and starting to save 250-500$ a month towards the new car.
            – JGlass
            23 hours ago












          up vote
          8
          down vote










          up vote
          8
          down vote









          Here's one option - figure out how much of a car payment you can afford, and start saving that today. Take your repair costs out of that fund. Continue saving until you have enough to and buy a used car with cash.



          I would not lease. Leasing is a way to make expensive cars affordable for a short period of time, but you get nothing else in return (it is essentially renting the car).






          share|improve this answer












          Here's one option - figure out how much of a car payment you can afford, and start saving that today. Take your repair costs out of that fund. Continue saving until you have enough to and buy a used car with cash.



          I would not lease. Leasing is a way to make expensive cars affordable for a short period of time, but you get nothing else in return (it is essentially renting the car).







          share|improve this answer












          share|improve this answer



          share|improve this answer










          answered yesterday









          D Stanley

          46.8k7142151




          46.8k7142151











          • But how do I know that any other used car won't have the same issues I am having now? Meaning, why would it be an advantage to get another used car over the used car I have now?
            – agblt
            yesterday











          • @agbit You get a mechanic to check it out before buying it.
            – Lawrence
            yesterday






          • 2




            My experience is that a 2-3 year old car with average mileage (30-60k) gives you the best balance of affordability and reliability.
            – D Stanley
            yesterday






          • 1




            @KaiQing you can deduct mileage or depreciation if you don't lease, which may be more than the deduction for the lease payment.
            – D Stanley
            yesterday






          • 2




            Thats exactly what I'm doing, people have been telling me for the last several years to get a new car to replace my 2004 with 180K miles on it - she almost never needs repairs and I've only put about 3,000 in repairs into it over the years with 2k being because I forgot to change the timing belt, it went and bent some rods and valves. So as you said - I'm driving her till at least 200K or longer and starting to save 250-500$ a month towards the new car.
            – JGlass
            23 hours ago
















          • But how do I know that any other used car won't have the same issues I am having now? Meaning, why would it be an advantage to get another used car over the used car I have now?
            – agblt
            yesterday











          • @agbit You get a mechanic to check it out before buying it.
            – Lawrence
            yesterday






          • 2




            My experience is that a 2-3 year old car with average mileage (30-60k) gives you the best balance of affordability and reliability.
            – D Stanley
            yesterday






          • 1




            @KaiQing you can deduct mileage or depreciation if you don't lease, which may be more than the deduction for the lease payment.
            – D Stanley
            yesterday






          • 2




            Thats exactly what I'm doing, people have been telling me for the last several years to get a new car to replace my 2004 with 180K miles on it - she almost never needs repairs and I've only put about 3,000 in repairs into it over the years with 2k being because I forgot to change the timing belt, it went and bent some rods and valves. So as you said - I'm driving her till at least 200K or longer and starting to save 250-500$ a month towards the new car.
            – JGlass
            23 hours ago















          But how do I know that any other used car won't have the same issues I am having now? Meaning, why would it be an advantage to get another used car over the used car I have now?
          – agblt
          yesterday





          But how do I know that any other used car won't have the same issues I am having now? Meaning, why would it be an advantage to get another used car over the used car I have now?
          – agblt
          yesterday













          @agbit You get a mechanic to check it out before buying it.
          – Lawrence
          yesterday




          @agbit You get a mechanic to check it out before buying it.
          – Lawrence
          yesterday




          2




          2




          My experience is that a 2-3 year old car with average mileage (30-60k) gives you the best balance of affordability and reliability.
          – D Stanley
          yesterday




          My experience is that a 2-3 year old car with average mileage (30-60k) gives you the best balance of affordability and reliability.
          – D Stanley
          yesterday




          1




          1




          @KaiQing you can deduct mileage or depreciation if you don't lease, which may be more than the deduction for the lease payment.
          – D Stanley
          yesterday




          @KaiQing you can deduct mileage or depreciation if you don't lease, which may be more than the deduction for the lease payment.
          – D Stanley
          yesterday




          2




          2




          Thats exactly what I'm doing, people have been telling me for the last several years to get a new car to replace my 2004 with 180K miles on it - she almost never needs repairs and I've only put about 3,000 in repairs into it over the years with 2k being because I forgot to change the timing belt, it went and bent some rods and valves. So as you said - I'm driving her till at least 200K or longer and starting to save 250-500$ a month towards the new car.
          – JGlass
          23 hours ago




          Thats exactly what I'm doing, people have been telling me for the last several years to get a new car to replace my 2004 with 180K miles on it - she almost never needs repairs and I've only put about 3,000 in repairs into it over the years with 2k being because I forgot to change the timing belt, it went and bent some rods and valves. So as you said - I'm driving her till at least 200K or longer and starting to save 250-500$ a month towards the new car.
          – JGlass
          23 hours ago










          up vote
          7
          down vote













          Cars are certainly a money suck, but sometimes the cost to the individual is well hidden. The most common and costly example of this is the loss of value when one purchases a new car. One can expect to lose about 5k per year (minimum) when one purchases a new car. More would be lost if that purchase is financed. In comparison, 1500/year is "small potatoes".



          IMHO it is foolish to buy a new car without significant assets. The growth of those assets counteract the depreciation one experiences when owning a new car. A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord.



          IMHO it is also foolish to obtain a loan for a car. Sure some people play the interest arbitrage game where they could pay cash but opt to finance because of a low teaser rate. If you have the full amount in savings and can earn more than the car loan, I guess I am okay with it, but that situation is mostly uncommon.



          So how much money do you have to buy a different car? That would really dictate the answer. If you have 10K saved, I would fix your car for the $800, sell it and buy something newer. If you have less, then I would be tempted to keep your current car. Buying something for less may cause you to inherit a different set of problems. You might come across a really good deal for something less and in that case I might purchase that car. However, as a general rule, I would want to move up in quality, save some more, and then repeat the process.



          And as others have said, leasing is an even more costly way to own a car then just buying new with a loan. Again it is just a way to disguise the cost of driving something fancy.



          You could be normal and just go out and get yourself a car loan and a car. However, remember that normal is broke. Most people do not have money. One of those reasons is the financing of new or nearly new cars.






          share|improve this answer


















          • 21




            "A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord." I don't think it's necessary to have a half million dollars in assets to purchase one of the top ten bestselling vehicles in the US.
            – Our_Benefactors
            yesterday






          • 2




            @Our_Benefactors the majority of people would agree with you.
            – Pete B.
            yesterday






          • 2




            @Our_Benefactors Agreed, that sentence is absolutely absurd.
            – MonkeyZeus
            yesterday






          • 2




            This is just one of many articles that may vary in detail, but generally indicate the same thing, and this is why "the majority agree": gobankingrates.com/saving-money/savings-advice/… Short story: Most spend way beyond their means. The Majority may not really be very sensible. Yes, "normal is broke."
            – mickeyf
            23 hours ago






          • 3




            @Fattie what a bizarre argument. Cars are self-evidently not worthless, and if you really thought they had no more value than a t-shirt then you wouldn't have volunteered t-shirts as an illustration. In any case, since almost all cars depreciate ultimately to zero, the idea that you can have a rule of thumb of assets to offset with is itself financially irresponsible. Any pattern of car ownership is a time-bounded expense to be funded by income, which may or may not be sourced from investment returns.
            – Will
            5 hours ago














          up vote
          7
          down vote













          Cars are certainly a money suck, but sometimes the cost to the individual is well hidden. The most common and costly example of this is the loss of value when one purchases a new car. One can expect to lose about 5k per year (minimum) when one purchases a new car. More would be lost if that purchase is financed. In comparison, 1500/year is "small potatoes".



          IMHO it is foolish to buy a new car without significant assets. The growth of those assets counteract the depreciation one experiences when owning a new car. A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord.



          IMHO it is also foolish to obtain a loan for a car. Sure some people play the interest arbitrage game where they could pay cash but opt to finance because of a low teaser rate. If you have the full amount in savings and can earn more than the car loan, I guess I am okay with it, but that situation is mostly uncommon.



          So how much money do you have to buy a different car? That would really dictate the answer. If you have 10K saved, I would fix your car for the $800, sell it and buy something newer. If you have less, then I would be tempted to keep your current car. Buying something for less may cause you to inherit a different set of problems. You might come across a really good deal for something less and in that case I might purchase that car. However, as a general rule, I would want to move up in quality, save some more, and then repeat the process.



          And as others have said, leasing is an even more costly way to own a car then just buying new with a loan. Again it is just a way to disguise the cost of driving something fancy.



          You could be normal and just go out and get yourself a car loan and a car. However, remember that normal is broke. Most people do not have money. One of those reasons is the financing of new or nearly new cars.






          share|improve this answer


















          • 21




            "A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord." I don't think it's necessary to have a half million dollars in assets to purchase one of the top ten bestselling vehicles in the US.
            – Our_Benefactors
            yesterday






          • 2




            @Our_Benefactors the majority of people would agree with you.
            – Pete B.
            yesterday






          • 2




            @Our_Benefactors Agreed, that sentence is absolutely absurd.
            – MonkeyZeus
            yesterday






          • 2




            This is just one of many articles that may vary in detail, but generally indicate the same thing, and this is why "the majority agree": gobankingrates.com/saving-money/savings-advice/… Short story: Most spend way beyond their means. The Majority may not really be very sensible. Yes, "normal is broke."
            – mickeyf
            23 hours ago






          • 3




            @Fattie what a bizarre argument. Cars are self-evidently not worthless, and if you really thought they had no more value than a t-shirt then you wouldn't have volunteered t-shirts as an illustration. In any case, since almost all cars depreciate ultimately to zero, the idea that you can have a rule of thumb of assets to offset with is itself financially irresponsible. Any pattern of car ownership is a time-bounded expense to be funded by income, which may or may not be sourced from investment returns.
            – Will
            5 hours ago












          up vote
          7
          down vote










          up vote
          7
          down vote









          Cars are certainly a money suck, but sometimes the cost to the individual is well hidden. The most common and costly example of this is the loss of value when one purchases a new car. One can expect to lose about 5k per year (minimum) when one purchases a new car. More would be lost if that purchase is financed. In comparison, 1500/year is "small potatoes".



          IMHO it is foolish to buy a new car without significant assets. The growth of those assets counteract the depreciation one experiences when owning a new car. A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord.



          IMHO it is also foolish to obtain a loan for a car. Sure some people play the interest arbitrage game where they could pay cash but opt to finance because of a low teaser rate. If you have the full amount in savings and can earn more than the car loan, I guess I am okay with it, but that situation is mostly uncommon.



          So how much money do you have to buy a different car? That would really dictate the answer. If you have 10K saved, I would fix your car for the $800, sell it and buy something newer. If you have less, then I would be tempted to keep your current car. Buying something for less may cause you to inherit a different set of problems. You might come across a really good deal for something less and in that case I might purchase that car. However, as a general rule, I would want to move up in quality, save some more, and then repeat the process.



          And as others have said, leasing is an even more costly way to own a car then just buying new with a loan. Again it is just a way to disguise the cost of driving something fancy.



          You could be normal and just go out and get yourself a car loan and a car. However, remember that normal is broke. Most people do not have money. One of those reasons is the financing of new or nearly new cars.






          share|improve this answer














          Cars are certainly a money suck, but sometimes the cost to the individual is well hidden. The most common and costly example of this is the loss of value when one purchases a new car. One can expect to lose about 5k per year (minimum) when one purchases a new car. More would be lost if that purchase is financed. In comparison, 1500/year is "small potatoes".



          IMHO it is foolish to buy a new car without significant assets. The growth of those assets counteract the depreciation one experiences when owning a new car. A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord.



          IMHO it is also foolish to obtain a loan for a car. Sure some people play the interest arbitrage game where they could pay cash but opt to finance because of a low teaser rate. If you have the full amount in savings and can earn more than the car loan, I guess I am okay with it, but that situation is mostly uncommon.



          So how much money do you have to buy a different car? That would really dictate the answer. If you have 10K saved, I would fix your car for the $800, sell it and buy something newer. If you have less, then I would be tempted to keep your current car. Buying something for less may cause you to inherit a different set of problems. You might come across a really good deal for something less and in that case I might purchase that car. However, as a general rule, I would want to move up in quality, save some more, and then repeat the process.



          And as others have said, leasing is an even more costly way to own a car then just buying new with a loan. Again it is just a way to disguise the cost of driving something fancy.



          You could be normal and just go out and get yourself a car loan and a car. However, remember that normal is broke. Most people do not have money. One of those reasons is the financing of new or nearly new cars.







          share|improve this answer














          share|improve this answer



          share|improve this answer








          edited yesterday

























          answered yesterday









          Pete B.

          46.7k1098146




          46.7k1098146







          • 21




            "A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord." I don't think it's necessary to have a half million dollars in assets to purchase one of the top ten bestselling vehicles in the US.
            – Our_Benefactors
            yesterday






          • 2




            @Our_Benefactors the majority of people would agree with you.
            – Pete B.
            yesterday






          • 2




            @Our_Benefactors Agreed, that sentence is absolutely absurd.
            – MonkeyZeus
            yesterday






          • 2




            This is just one of many articles that may vary in detail, but generally indicate the same thing, and this is why "the majority agree": gobankingrates.com/saving-money/savings-advice/… Short story: Most spend way beyond their means. The Majority may not really be very sensible. Yes, "normal is broke."
            – mickeyf
            23 hours ago






          • 3




            @Fattie what a bizarre argument. Cars are self-evidently not worthless, and if you really thought they had no more value than a t-shirt then you wouldn't have volunteered t-shirts as an illustration. In any case, since almost all cars depreciate ultimately to zero, the idea that you can have a rule of thumb of assets to offset with is itself financially irresponsible. Any pattern of car ownership is a time-bounded expense to be funded by income, which may or may not be sourced from investment returns.
            – Will
            5 hours ago












          • 21




            "A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord." I don't think it's necessary to have a half million dollars in assets to purchase one of the top ten bestselling vehicles in the US.
            – Our_Benefactors
            yesterday






          • 2




            @Our_Benefactors the majority of people would agree with you.
            – Pete B.
            yesterday






          • 2




            @Our_Benefactors Agreed, that sentence is absolutely absurd.
            – MonkeyZeus
            yesterday






          • 2




            This is just one of many articles that may vary in detail, but generally indicate the same thing, and this is why "the majority agree": gobankingrates.com/saving-money/savings-advice/… Short story: Most spend way beyond their means. The Majority may not really be very sensible. Yes, "normal is broke."
            – mickeyf
            23 hours ago






          • 3




            @Fattie what a bizarre argument. Cars are self-evidently not worthless, and if you really thought they had no more value than a t-shirt then you wouldn't have volunteered t-shirts as an illustration. In any case, since almost all cars depreciate ultimately to zero, the idea that you can have a rule of thumb of assets to offset with is itself financially irresponsible. Any pattern of car ownership is a time-bounded expense to be funded by income, which may or may not be sourced from investment returns.
            – Will
            5 hours ago







          21




          21




          "A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord." I don't think it's necessary to have a half million dollars in assets to purchase one of the top ten bestselling vehicles in the US.
          – Our_Benefactors
          yesterday




          "A decent rule of thumb would be a 500K in invested assets to buy a fairly common car like a Corolla or Accord." I don't think it's necessary to have a half million dollars in assets to purchase one of the top ten bestselling vehicles in the US.
          – Our_Benefactors
          yesterday




          2




          2




          @Our_Benefactors the majority of people would agree with you.
          – Pete B.
          yesterday




          @Our_Benefactors the majority of people would agree with you.
          – Pete B.
          yesterday




          2




          2




          @Our_Benefactors Agreed, that sentence is absolutely absurd.
          – MonkeyZeus
          yesterday




          @Our_Benefactors Agreed, that sentence is absolutely absurd.
          – MonkeyZeus
          yesterday




          2




          2




          This is just one of many articles that may vary in detail, but generally indicate the same thing, and this is why "the majority agree": gobankingrates.com/saving-money/savings-advice/… Short story: Most spend way beyond their means. The Majority may not really be very sensible. Yes, "normal is broke."
          – mickeyf
          23 hours ago




          This is just one of many articles that may vary in detail, but generally indicate the same thing, and this is why "the majority agree": gobankingrates.com/saving-money/savings-advice/… Short story: Most spend way beyond their means. The Majority may not really be very sensible. Yes, "normal is broke."
          – mickeyf
          23 hours ago




          3




          3




          @Fattie what a bizarre argument. Cars are self-evidently not worthless, and if you really thought they had no more value than a t-shirt then you wouldn't have volunteered t-shirts as an illustration. In any case, since almost all cars depreciate ultimately to zero, the idea that you can have a rule of thumb of assets to offset with is itself financially irresponsible. Any pattern of car ownership is a time-bounded expense to be funded by income, which may or may not be sourced from investment returns.
          – Will
          5 hours ago




          @Fattie what a bizarre argument. Cars are self-evidently not worthless, and if you really thought they had no more value than a t-shirt then you wouldn't have volunteered t-shirts as an illustration. In any case, since almost all cars depreciate ultimately to zero, the idea that you can have a rule of thumb of assets to offset with is itself financially irresponsible. Any pattern of car ownership is a time-bounded expense to be funded by income, which may or may not be sourced from investment returns.
          – Will
          5 hours ago










          up vote
          3
          down vote













          Call your insurance agent and see what Total Loss Claim would pay out.
          If the vehicle is worth more than the yearly cost of repairs (in your case $1470) suck it up, pay for the repair, and start saving for a new car.



          If your insurance company can't give you a firm number of a Total Loss claim, The Kelly Blue Book value of the vehicle is likely a decent estimate (but no promises).



          If it is not worth at least $1470 to the insurance company, then you will need to buy another car. The reason you should buy/lease/finance another car is simple. If you total your current car in an accident on the way home from the repair shop, and the insurance company doesn't settle your claim at $1470 or more, then you are now $1470 - settlement dollars poorer and car-less.



          Always make sure yearly repair cost are not close to or more than the value of your car



          P.S.



          $1470 sounds a bit high for average yearly repairs. Being car-less also cost in either convince (i.e you and your SO have to carpool to and from work), or actual cost of renting a car. Be sure to factor these cost into the $1470 number. Especially if your job requires frequent travel by car, it might be time to buy a more reliable car for that reason alone.






          share|improve this answer






















          • Why make the cost-benefit analysis based on the yearly repair costs?
            – Edge
            13 hours ago










          • Forking over $1400 a year is $116 a month (1400/12), that's much less than a car payment would be. The average car payment is $523/month. Especially if the car is not worth much, you also need to consider the insurance payout.
            – sevensevens
            6 hours ago















          up vote
          3
          down vote













          Call your insurance agent and see what Total Loss Claim would pay out.
          If the vehicle is worth more than the yearly cost of repairs (in your case $1470) suck it up, pay for the repair, and start saving for a new car.



          If your insurance company can't give you a firm number of a Total Loss claim, The Kelly Blue Book value of the vehicle is likely a decent estimate (but no promises).



          If it is not worth at least $1470 to the insurance company, then you will need to buy another car. The reason you should buy/lease/finance another car is simple. If you total your current car in an accident on the way home from the repair shop, and the insurance company doesn't settle your claim at $1470 or more, then you are now $1470 - settlement dollars poorer and car-less.



          Always make sure yearly repair cost are not close to or more than the value of your car



          P.S.



          $1470 sounds a bit high for average yearly repairs. Being car-less also cost in either convince (i.e you and your SO have to carpool to and from work), or actual cost of renting a car. Be sure to factor these cost into the $1470 number. Especially if your job requires frequent travel by car, it might be time to buy a more reliable car for that reason alone.






          share|improve this answer






















          • Why make the cost-benefit analysis based on the yearly repair costs?
            – Edge
            13 hours ago










          • Forking over $1400 a year is $116 a month (1400/12), that's much less than a car payment would be. The average car payment is $523/month. Especially if the car is not worth much, you also need to consider the insurance payout.
            – sevensevens
            6 hours ago













          up vote
          3
          down vote










          up vote
          3
          down vote









          Call your insurance agent and see what Total Loss Claim would pay out.
          If the vehicle is worth more than the yearly cost of repairs (in your case $1470) suck it up, pay for the repair, and start saving for a new car.



          If your insurance company can't give you a firm number of a Total Loss claim, The Kelly Blue Book value of the vehicle is likely a decent estimate (but no promises).



          If it is not worth at least $1470 to the insurance company, then you will need to buy another car. The reason you should buy/lease/finance another car is simple. If you total your current car in an accident on the way home from the repair shop, and the insurance company doesn't settle your claim at $1470 or more, then you are now $1470 - settlement dollars poorer and car-less.



          Always make sure yearly repair cost are not close to or more than the value of your car



          P.S.



          $1470 sounds a bit high for average yearly repairs. Being car-less also cost in either convince (i.e you and your SO have to carpool to and from work), or actual cost of renting a car. Be sure to factor these cost into the $1470 number. Especially if your job requires frequent travel by car, it might be time to buy a more reliable car for that reason alone.






          share|improve this answer














          Call your insurance agent and see what Total Loss Claim would pay out.
          If the vehicle is worth more than the yearly cost of repairs (in your case $1470) suck it up, pay for the repair, and start saving for a new car.



          If your insurance company can't give you a firm number of a Total Loss claim, The Kelly Blue Book value of the vehicle is likely a decent estimate (but no promises).



          If it is not worth at least $1470 to the insurance company, then you will need to buy another car. The reason you should buy/lease/finance another car is simple. If you total your current car in an accident on the way home from the repair shop, and the insurance company doesn't settle your claim at $1470 or more, then you are now $1470 - settlement dollars poorer and car-less.



          Always make sure yearly repair cost are not close to or more than the value of your car



          P.S.



          $1470 sounds a bit high for average yearly repairs. Being car-less also cost in either convince (i.e you and your SO have to carpool to and from work), or actual cost of renting a car. Be sure to factor these cost into the $1470 number. Especially if your job requires frequent travel by car, it might be time to buy a more reliable car for that reason alone.







          share|improve this answer














          share|improve this answer



          share|improve this answer








          edited yesterday

























          answered yesterday









          sevensevens

          22414




          22414











          • Why make the cost-benefit analysis based on the yearly repair costs?
            – Edge
            13 hours ago










          • Forking over $1400 a year is $116 a month (1400/12), that's much less than a car payment would be. The average car payment is $523/month. Especially if the car is not worth much, you also need to consider the insurance payout.
            – sevensevens
            6 hours ago

















          • Why make the cost-benefit analysis based on the yearly repair costs?
            – Edge
            13 hours ago










          • Forking over $1400 a year is $116 a month (1400/12), that's much less than a car payment would be. The average car payment is $523/month. Especially if the car is not worth much, you also need to consider the insurance payout.
            – sevensevens
            6 hours ago
















          Why make the cost-benefit analysis based on the yearly repair costs?
          – Edge
          13 hours ago




          Why make the cost-benefit analysis based on the yearly repair costs?
          – Edge
          13 hours ago












          Forking over $1400 a year is $116 a month (1400/12), that's much less than a car payment would be. The average car payment is $523/month. Especially if the car is not worth much, you also need to consider the insurance payout.
          – sevensevens
          6 hours ago





          Forking over $1400 a year is $116 a month (1400/12), that's much less than a car payment would be. The average car payment is $523/month. Especially if the car is not worth much, you also need to consider the insurance payout.
          – sevensevens
          6 hours ago











          up vote
          0
          down vote













          Spreading out the cost of a car is a good idea, because most of us don't get paid the cost of a vehicle in a single paycheck. However, paying interest on a depreciating asset isn't a good move from a financial perspective. Leasing generally only makes sense for businesses who can get some tax advantages and smooth out their costs, though a lease is not a good value for the leasee.



          The best way to buy a car from where you are today, is to make payments to a car fund now. This fund is your car budget. You save until you can afford the car you need or want. The reason this makes sense is most visible when you do the math.



          Car loan scenario:



          • Car: 3 year old sedan with low miles in excellent condition

          • Cost: $15,000

          • Down: $0

          • Term: 5 years

          • Interest: 5%

          • Payment: $283.07

          • Total Cost: $16984.11

          Car savings scenario:



          • Start: $0

          • Monthly: $283.07

          • Term: 5 years

          • Interest: 1%

          • Total Value: $17,408.54

          There will probably be comments about inflation and in the loan scenario you are driving a nicer car sooner and for longer and you can get more for your current car now, etc. Those points have some validity. You can partially offset inflation with an investment other than a simple savings account. The first 5 years are actually the hardest and least beneficial. The larger value of the savings approach is seen when applied over a lifetime rather than just a 5 year period. Once you complete the first cycle, you're selling a 7-8 year old car and buying a 2-3 year old car every 5 years for about $2500 less each cycle.



          What also shouldn't be overlooked is the greatest value of the savings approach: life will happen during the next 5 years. What are the chances that the average individual will face some type of financial reversal, such as a job loss, need a major home repair, suffer a temporary disability or have significant medical expenses in any given 5 year period? If you are saving, you can simply put that on hold until the situation is resolved. Worst case, you can draw on those funds to resolve the crisis. If you are making payments, you will probably have to sell the car or have it repossessed. The car savings insulates you to a degree from financial misfortune, which means you are more financially stable and have greater peace of mind.






          share|improve this answer
























            up vote
            0
            down vote













            Spreading out the cost of a car is a good idea, because most of us don't get paid the cost of a vehicle in a single paycheck. However, paying interest on a depreciating asset isn't a good move from a financial perspective. Leasing generally only makes sense for businesses who can get some tax advantages and smooth out their costs, though a lease is not a good value for the leasee.



            The best way to buy a car from where you are today, is to make payments to a car fund now. This fund is your car budget. You save until you can afford the car you need or want. The reason this makes sense is most visible when you do the math.



            Car loan scenario:



            • Car: 3 year old sedan with low miles in excellent condition

            • Cost: $15,000

            • Down: $0

            • Term: 5 years

            • Interest: 5%

            • Payment: $283.07

            • Total Cost: $16984.11

            Car savings scenario:



            • Start: $0

            • Monthly: $283.07

            • Term: 5 years

            • Interest: 1%

            • Total Value: $17,408.54

            There will probably be comments about inflation and in the loan scenario you are driving a nicer car sooner and for longer and you can get more for your current car now, etc. Those points have some validity. You can partially offset inflation with an investment other than a simple savings account. The first 5 years are actually the hardest and least beneficial. The larger value of the savings approach is seen when applied over a lifetime rather than just a 5 year period. Once you complete the first cycle, you're selling a 7-8 year old car and buying a 2-3 year old car every 5 years for about $2500 less each cycle.



            What also shouldn't be overlooked is the greatest value of the savings approach: life will happen during the next 5 years. What are the chances that the average individual will face some type of financial reversal, such as a job loss, need a major home repair, suffer a temporary disability or have significant medical expenses in any given 5 year period? If you are saving, you can simply put that on hold until the situation is resolved. Worst case, you can draw on those funds to resolve the crisis. If you are making payments, you will probably have to sell the car or have it repossessed. The car savings insulates you to a degree from financial misfortune, which means you are more financially stable and have greater peace of mind.






            share|improve this answer






















              up vote
              0
              down vote










              up vote
              0
              down vote









              Spreading out the cost of a car is a good idea, because most of us don't get paid the cost of a vehicle in a single paycheck. However, paying interest on a depreciating asset isn't a good move from a financial perspective. Leasing generally only makes sense for businesses who can get some tax advantages and smooth out their costs, though a lease is not a good value for the leasee.



              The best way to buy a car from where you are today, is to make payments to a car fund now. This fund is your car budget. You save until you can afford the car you need or want. The reason this makes sense is most visible when you do the math.



              Car loan scenario:



              • Car: 3 year old sedan with low miles in excellent condition

              • Cost: $15,000

              • Down: $0

              • Term: 5 years

              • Interest: 5%

              • Payment: $283.07

              • Total Cost: $16984.11

              Car savings scenario:



              • Start: $0

              • Monthly: $283.07

              • Term: 5 years

              • Interest: 1%

              • Total Value: $17,408.54

              There will probably be comments about inflation and in the loan scenario you are driving a nicer car sooner and for longer and you can get more for your current car now, etc. Those points have some validity. You can partially offset inflation with an investment other than a simple savings account. The first 5 years are actually the hardest and least beneficial. The larger value of the savings approach is seen when applied over a lifetime rather than just a 5 year period. Once you complete the first cycle, you're selling a 7-8 year old car and buying a 2-3 year old car every 5 years for about $2500 less each cycle.



              What also shouldn't be overlooked is the greatest value of the savings approach: life will happen during the next 5 years. What are the chances that the average individual will face some type of financial reversal, such as a job loss, need a major home repair, suffer a temporary disability or have significant medical expenses in any given 5 year period? If you are saving, you can simply put that on hold until the situation is resolved. Worst case, you can draw on those funds to resolve the crisis. If you are making payments, you will probably have to sell the car or have it repossessed. The car savings insulates you to a degree from financial misfortune, which means you are more financially stable and have greater peace of mind.






              share|improve this answer












              Spreading out the cost of a car is a good idea, because most of us don't get paid the cost of a vehicle in a single paycheck. However, paying interest on a depreciating asset isn't a good move from a financial perspective. Leasing generally only makes sense for businesses who can get some tax advantages and smooth out their costs, though a lease is not a good value for the leasee.



              The best way to buy a car from where you are today, is to make payments to a car fund now. This fund is your car budget. You save until you can afford the car you need or want. The reason this makes sense is most visible when you do the math.



              Car loan scenario:



              • Car: 3 year old sedan with low miles in excellent condition

              • Cost: $15,000

              • Down: $0

              • Term: 5 years

              • Interest: 5%

              • Payment: $283.07

              • Total Cost: $16984.11

              Car savings scenario:



              • Start: $0

              • Monthly: $283.07

              • Term: 5 years

              • Interest: 1%

              • Total Value: $17,408.54

              There will probably be comments about inflation and in the loan scenario you are driving a nicer car sooner and for longer and you can get more for your current car now, etc. Those points have some validity. You can partially offset inflation with an investment other than a simple savings account. The first 5 years are actually the hardest and least beneficial. The larger value of the savings approach is seen when applied over a lifetime rather than just a 5 year period. Once you complete the first cycle, you're selling a 7-8 year old car and buying a 2-3 year old car every 5 years for about $2500 less each cycle.



              What also shouldn't be overlooked is the greatest value of the savings approach: life will happen during the next 5 years. What are the chances that the average individual will face some type of financial reversal, such as a job loss, need a major home repair, suffer a temporary disability or have significant medical expenses in any given 5 year period? If you are saving, you can simply put that on hold until the situation is resolved. Worst case, you can draw on those funds to resolve the crisis. If you are making payments, you will probably have to sell the car or have it repossessed. The car savings insulates you to a degree from financial misfortune, which means you are more financially stable and have greater peace of mind.







              share|improve this answer












              share|improve this answer



              share|improve this answer










              answered yesterday









              DSway

              967413




              967413




















                  up vote
                  0
                  down vote













                  You have two separate questions here: "...get rid of this car and either buy or lease a new comparable car..."



                  Getting rid of this car would seem to be a definite yes. I find it hard to believe that ANY car, especially one with such low mileage, would require the level of repairs that you've experienced. Other than the normal maintenance items like brake pads, I'd be surprised to encounter one or two significant problems in a decade. Things like replacing transmissions & fuel tanks just shouldn't happen, period. So it seems you have a lemon, and junking it is the best option.



                  Now as to getting a COMPARABLE new car... Well, other questions here deal with the economics of new cars, so I won't repeat them. But in getting your new vehicle, look at information on reliability. Then get a Honda, Toyota, or perhaps Mazda or Subaru.






                  share|improve this answer
























                    up vote
                    0
                    down vote













                    You have two separate questions here: "...get rid of this car and either buy or lease a new comparable car..."



                    Getting rid of this car would seem to be a definite yes. I find it hard to believe that ANY car, especially one with such low mileage, would require the level of repairs that you've experienced. Other than the normal maintenance items like brake pads, I'd be surprised to encounter one or two significant problems in a decade. Things like replacing transmissions & fuel tanks just shouldn't happen, period. So it seems you have a lemon, and junking it is the best option.



                    Now as to getting a COMPARABLE new car... Well, other questions here deal with the economics of new cars, so I won't repeat them. But in getting your new vehicle, look at information on reliability. Then get a Honda, Toyota, or perhaps Mazda or Subaru.






                    share|improve this answer






















                      up vote
                      0
                      down vote










                      up vote
                      0
                      down vote









                      You have two separate questions here: "...get rid of this car and either buy or lease a new comparable car..."



                      Getting rid of this car would seem to be a definite yes. I find it hard to believe that ANY car, especially one with such low mileage, would require the level of repairs that you've experienced. Other than the normal maintenance items like brake pads, I'd be surprised to encounter one or two significant problems in a decade. Things like replacing transmissions & fuel tanks just shouldn't happen, period. So it seems you have a lemon, and junking it is the best option.



                      Now as to getting a COMPARABLE new car... Well, other questions here deal with the economics of new cars, so I won't repeat them. But in getting your new vehicle, look at information on reliability. Then get a Honda, Toyota, or perhaps Mazda or Subaru.






                      share|improve this answer












                      You have two separate questions here: "...get rid of this car and either buy or lease a new comparable car..."



                      Getting rid of this car would seem to be a definite yes. I find it hard to believe that ANY car, especially one with such low mileage, would require the level of repairs that you've experienced. Other than the normal maintenance items like brake pads, I'd be surprised to encounter one or two significant problems in a decade. Things like replacing transmissions & fuel tanks just shouldn't happen, period. So it seems you have a lemon, and junking it is the best option.



                      Now as to getting a COMPARABLE new car... Well, other questions here deal with the economics of new cars, so I won't repeat them. But in getting your new vehicle, look at information on reliability. Then get a Honda, Toyota, or perhaps Mazda or Subaru.







                      share|improve this answer












                      share|improve this answer



                      share|improve this answer










                      answered yesterday









                      jamesqf

                      2,796815




                      2,796815




















                          up vote
                          0
                          down vote













                          Your question simply has two parts, both of which are easily answered



                          (1) Buying a new car is so far from the realm of fiscal sanity, that you can just totally dismiss it.



                          It's not even in the ballpark of reality - forget it.



                          Before going even any further, note that the insurance you must have on a new purchased/leased will crush your financial life.



                          On that - it is perhaps best to dismiss any answers on this page which don't mention the insurance issue on car purchases/leasing - one of the primary reasons "new cars are insanity".



                          My rough calculation is always that: sure, as an absolute luxury for high earners, it's fine to throw away money on a new car. In short, don't even think of a brand-new car unless your family income is over US$350,000 a year.



                          (2) Regarding your current car. It's only 13 years old and has no mileage.



                          With modern technology (and this is incredible) cars as new as yours and with as little mileage as yours, drive exactly the same as a brand new car which just rolled off the assembly line.



                          For example, one of our cars is a 15? yr old Toyota minivan which has 250000? miles. I paid a few thousand $ for it. It drives literally exactly the same as a new Sienna just off the assembly line. Exactly the same - literally EXACTLY as reliable, smooth, fast and quiet. The only advantage of me walking in to a dealer and buying a new $50,000 Sienna would be that .. it has been washed. Siennas are perhaps the best-engineered vehicle ever, but this applies to all modern vehicles - we live in amazing times for cars.



                          Indeed as a curiosity, an acquaintance bought a recent model Sienna for $25,000 and it happened to need a $1500 repair in the first year. Our one needed a $600 repair in the same year. Recall that my one is utterly, absolutely, perfectly, identical in terms of speed, reliability, quietness, smoothness and luxury crap. Hence, friend threw away $23,000 (could have bought my one for $2000) and (by bad luck) $900 on repairs. Admittedly, friend's one is, or at least was for a few weeks, extremely clean. (The dealers wash used cars before they sell them.) Also, friend happened to scratch the back of his one. My one has a scratch, but it's a smaller scratch.



                          So for better or worse you can dismiss the idea that another car you buy will be "generally better".



                          1. Your car drives as-new, the next one you buy will drive as-new, and

                          2. the cost of repairs is unfortunately down to luck.

                          It is true that some cars are "just bad luck" and you seem to be forever repairing them.



                          So, it could be that you are unfortunately spending a bit much each year on the Impala - you're spending say 2000 a year whereas if you have a "good luck" car there's only 500 or 100 a year in repairs.



                          That will happen. It's random. Unfortunately there is just nothing you can do about that.



                          Unfortunately too, you suffer the "better the devil you know" factor. If you dump your car and buy another similar car (for say $4000 .. whatever), maybe it will never have a repair, or maybe something will go the first week. Unfortunately, it's impossible to guess.



                          Purely FWIW as a "car guy guess", I personally would dump this Impala, and buy some new used car (for, say, 4000 - 4500 bucks).



                          But many, many people would say "800 for a fuel tank, so what? pay it and you have a new fuel tank!"






                          share|improve this answer
























                            up vote
                            0
                            down vote













                            Your question simply has two parts, both of which are easily answered



                            (1) Buying a new car is so far from the realm of fiscal sanity, that you can just totally dismiss it.



                            It's not even in the ballpark of reality - forget it.



                            Before going even any further, note that the insurance you must have on a new purchased/leased will crush your financial life.



                            On that - it is perhaps best to dismiss any answers on this page which don't mention the insurance issue on car purchases/leasing - one of the primary reasons "new cars are insanity".



                            My rough calculation is always that: sure, as an absolute luxury for high earners, it's fine to throw away money on a new car. In short, don't even think of a brand-new car unless your family income is over US$350,000 a year.



                            (2) Regarding your current car. It's only 13 years old and has no mileage.



                            With modern technology (and this is incredible) cars as new as yours and with as little mileage as yours, drive exactly the same as a brand new car which just rolled off the assembly line.



                            For example, one of our cars is a 15? yr old Toyota minivan which has 250000? miles. I paid a few thousand $ for it. It drives literally exactly the same as a new Sienna just off the assembly line. Exactly the same - literally EXACTLY as reliable, smooth, fast and quiet. The only advantage of me walking in to a dealer and buying a new $50,000 Sienna would be that .. it has been washed. Siennas are perhaps the best-engineered vehicle ever, but this applies to all modern vehicles - we live in amazing times for cars.



                            Indeed as a curiosity, an acquaintance bought a recent model Sienna for $25,000 and it happened to need a $1500 repair in the first year. Our one needed a $600 repair in the same year. Recall that my one is utterly, absolutely, perfectly, identical in terms of speed, reliability, quietness, smoothness and luxury crap. Hence, friend threw away $23,000 (could have bought my one for $2000) and (by bad luck) $900 on repairs. Admittedly, friend's one is, or at least was for a few weeks, extremely clean. (The dealers wash used cars before they sell them.) Also, friend happened to scratch the back of his one. My one has a scratch, but it's a smaller scratch.



                            So for better or worse you can dismiss the idea that another car you buy will be "generally better".



                            1. Your car drives as-new, the next one you buy will drive as-new, and

                            2. the cost of repairs is unfortunately down to luck.

                            It is true that some cars are "just bad luck" and you seem to be forever repairing them.



                            So, it could be that you are unfortunately spending a bit much each year on the Impala - you're spending say 2000 a year whereas if you have a "good luck" car there's only 500 or 100 a year in repairs.



                            That will happen. It's random. Unfortunately there is just nothing you can do about that.



                            Unfortunately too, you suffer the "better the devil you know" factor. If you dump your car and buy another similar car (for say $4000 .. whatever), maybe it will never have a repair, or maybe something will go the first week. Unfortunately, it's impossible to guess.



                            Purely FWIW as a "car guy guess", I personally would dump this Impala, and buy some new used car (for, say, 4000 - 4500 bucks).



                            But many, many people would say "800 for a fuel tank, so what? pay it and you have a new fuel tank!"






                            share|improve this answer






















                              up vote
                              0
                              down vote










                              up vote
                              0
                              down vote









                              Your question simply has two parts, both of which are easily answered



                              (1) Buying a new car is so far from the realm of fiscal sanity, that you can just totally dismiss it.



                              It's not even in the ballpark of reality - forget it.



                              Before going even any further, note that the insurance you must have on a new purchased/leased will crush your financial life.



                              On that - it is perhaps best to dismiss any answers on this page which don't mention the insurance issue on car purchases/leasing - one of the primary reasons "new cars are insanity".



                              My rough calculation is always that: sure, as an absolute luxury for high earners, it's fine to throw away money on a new car. In short, don't even think of a brand-new car unless your family income is over US$350,000 a year.



                              (2) Regarding your current car. It's only 13 years old and has no mileage.



                              With modern technology (and this is incredible) cars as new as yours and with as little mileage as yours, drive exactly the same as a brand new car which just rolled off the assembly line.



                              For example, one of our cars is a 15? yr old Toyota minivan which has 250000? miles. I paid a few thousand $ for it. It drives literally exactly the same as a new Sienna just off the assembly line. Exactly the same - literally EXACTLY as reliable, smooth, fast and quiet. The only advantage of me walking in to a dealer and buying a new $50,000 Sienna would be that .. it has been washed. Siennas are perhaps the best-engineered vehicle ever, but this applies to all modern vehicles - we live in amazing times for cars.



                              Indeed as a curiosity, an acquaintance bought a recent model Sienna for $25,000 and it happened to need a $1500 repair in the first year. Our one needed a $600 repair in the same year. Recall that my one is utterly, absolutely, perfectly, identical in terms of speed, reliability, quietness, smoothness and luxury crap. Hence, friend threw away $23,000 (could have bought my one for $2000) and (by bad luck) $900 on repairs. Admittedly, friend's one is, or at least was for a few weeks, extremely clean. (The dealers wash used cars before they sell them.) Also, friend happened to scratch the back of his one. My one has a scratch, but it's a smaller scratch.



                              So for better or worse you can dismiss the idea that another car you buy will be "generally better".



                              1. Your car drives as-new, the next one you buy will drive as-new, and

                              2. the cost of repairs is unfortunately down to luck.

                              It is true that some cars are "just bad luck" and you seem to be forever repairing them.



                              So, it could be that you are unfortunately spending a bit much each year on the Impala - you're spending say 2000 a year whereas if you have a "good luck" car there's only 500 or 100 a year in repairs.



                              That will happen. It's random. Unfortunately there is just nothing you can do about that.



                              Unfortunately too, you suffer the "better the devil you know" factor. If you dump your car and buy another similar car (for say $4000 .. whatever), maybe it will never have a repair, or maybe something will go the first week. Unfortunately, it's impossible to guess.



                              Purely FWIW as a "car guy guess", I personally would dump this Impala, and buy some new used car (for, say, 4000 - 4500 bucks).



                              But many, many people would say "800 for a fuel tank, so what? pay it and you have a new fuel tank!"






                              share|improve this answer












                              Your question simply has two parts, both of which are easily answered



                              (1) Buying a new car is so far from the realm of fiscal sanity, that you can just totally dismiss it.



                              It's not even in the ballpark of reality - forget it.



                              Before going even any further, note that the insurance you must have on a new purchased/leased will crush your financial life.



                              On that - it is perhaps best to dismiss any answers on this page which don't mention the insurance issue on car purchases/leasing - one of the primary reasons "new cars are insanity".



                              My rough calculation is always that: sure, as an absolute luxury for high earners, it's fine to throw away money on a new car. In short, don't even think of a brand-new car unless your family income is over US$350,000 a year.



                              (2) Regarding your current car. It's only 13 years old and has no mileage.



                              With modern technology (and this is incredible) cars as new as yours and with as little mileage as yours, drive exactly the same as a brand new car which just rolled off the assembly line.



                              For example, one of our cars is a 15? yr old Toyota minivan which has 250000? miles. I paid a few thousand $ for it. It drives literally exactly the same as a new Sienna just off the assembly line. Exactly the same - literally EXACTLY as reliable, smooth, fast and quiet. The only advantage of me walking in to a dealer and buying a new $50,000 Sienna would be that .. it has been washed. Siennas are perhaps the best-engineered vehicle ever, but this applies to all modern vehicles - we live in amazing times for cars.



                              Indeed as a curiosity, an acquaintance bought a recent model Sienna for $25,000 and it happened to need a $1500 repair in the first year. Our one needed a $600 repair in the same year. Recall that my one is utterly, absolutely, perfectly, identical in terms of speed, reliability, quietness, smoothness and luxury crap. Hence, friend threw away $23,000 (could have bought my one for $2000) and (by bad luck) $900 on repairs. Admittedly, friend's one is, or at least was for a few weeks, extremely clean. (The dealers wash used cars before they sell them.) Also, friend happened to scratch the back of his one. My one has a scratch, but it's a smaller scratch.



                              So for better or worse you can dismiss the idea that another car you buy will be "generally better".



                              1. Your car drives as-new, the next one you buy will drive as-new, and

                              2. the cost of repairs is unfortunately down to luck.

                              It is true that some cars are "just bad luck" and you seem to be forever repairing them.



                              So, it could be that you are unfortunately spending a bit much each year on the Impala - you're spending say 2000 a year whereas if you have a "good luck" car there's only 500 or 100 a year in repairs.



                              That will happen. It's random. Unfortunately there is just nothing you can do about that.



                              Unfortunately too, you suffer the "better the devil you know" factor. If you dump your car and buy another similar car (for say $4000 .. whatever), maybe it will never have a repair, or maybe something will go the first week. Unfortunately, it's impossible to guess.



                              Purely FWIW as a "car guy guess", I personally would dump this Impala, and buy some new used car (for, say, 4000 - 4500 bucks).



                              But many, many people would say "800 for a fuel tank, so what? pay it and you have a new fuel tank!"







                              share|improve this answer












                              share|improve this answer



                              share|improve this answer










                              answered 5 hours ago









                              Fattie

                              3,35321631




                              3,35321631




















                                  up vote
                                  0
                                  down vote













                                  If all you care about is the math, this is a relatively simple matter to work out.



                                  First, you need to estimate your annual expenditure on your current vehicle, including insurance, fuel and repairs. Let's imagine $500 for insurance, and your $1,470 for repairs. Fuel we'll estimate at 10,000 miles, 22mpg, and $2.87 per gallon, which is $1,304 per year. The total cost is therefore $3,274 per year.



                                  Then, do the same for the replacement vehicle. Let's assume slightly higher insurance ($600), but fewer repairs ($300). Let's say you get a 25mpg vehicle this time, giving a fuel cost of $1,148, and a total cost of $2,048 per year.



                                  The new vehicle should therefore save you around $1,226 per year — however, you have to pay for it!



                                  So estimate how long you think the new vehicle will last. Let's estimate 100,000 miles. So if you do 10,000 miles per year, and the new car has 30,000 miles on the clock, you can guess it will last seven years. If such a vehicle cost $7,000 that's equivalent to $1,000 per year. If you need to borrow to make the purchase, you'll have to add on interest, of course.



                                  In this scenario, spending $1,000 this year to save $1,226 is certainly worthwhile. In fact, if the new vehicle costs up to $8,500 (7 x $1,226), you'll be better off.



                                  There's obviously lots of estimates involved, but that's the nature of trying to predict the future. When I'm buying a new car, I create a spreadsheet with all this data, including on the existing car, before making my decision. It's quite quick to calculate once the spreadsheet is set up.






                                  share|improve this answer
























                                    up vote
                                    0
                                    down vote













                                    If all you care about is the math, this is a relatively simple matter to work out.



                                    First, you need to estimate your annual expenditure on your current vehicle, including insurance, fuel and repairs. Let's imagine $500 for insurance, and your $1,470 for repairs. Fuel we'll estimate at 10,000 miles, 22mpg, and $2.87 per gallon, which is $1,304 per year. The total cost is therefore $3,274 per year.



                                    Then, do the same for the replacement vehicle. Let's assume slightly higher insurance ($600), but fewer repairs ($300). Let's say you get a 25mpg vehicle this time, giving a fuel cost of $1,148, and a total cost of $2,048 per year.



                                    The new vehicle should therefore save you around $1,226 per year — however, you have to pay for it!



                                    So estimate how long you think the new vehicle will last. Let's estimate 100,000 miles. So if you do 10,000 miles per year, and the new car has 30,000 miles on the clock, you can guess it will last seven years. If such a vehicle cost $7,000 that's equivalent to $1,000 per year. If you need to borrow to make the purchase, you'll have to add on interest, of course.



                                    In this scenario, spending $1,000 this year to save $1,226 is certainly worthwhile. In fact, if the new vehicle costs up to $8,500 (7 x $1,226), you'll be better off.



                                    There's obviously lots of estimates involved, but that's the nature of trying to predict the future. When I'm buying a new car, I create a spreadsheet with all this data, including on the existing car, before making my decision. It's quite quick to calculate once the spreadsheet is set up.






                                    share|improve this answer






















                                      up vote
                                      0
                                      down vote










                                      up vote
                                      0
                                      down vote









                                      If all you care about is the math, this is a relatively simple matter to work out.



                                      First, you need to estimate your annual expenditure on your current vehicle, including insurance, fuel and repairs. Let's imagine $500 for insurance, and your $1,470 for repairs. Fuel we'll estimate at 10,000 miles, 22mpg, and $2.87 per gallon, which is $1,304 per year. The total cost is therefore $3,274 per year.



                                      Then, do the same for the replacement vehicle. Let's assume slightly higher insurance ($600), but fewer repairs ($300). Let's say you get a 25mpg vehicle this time, giving a fuel cost of $1,148, and a total cost of $2,048 per year.



                                      The new vehicle should therefore save you around $1,226 per year — however, you have to pay for it!



                                      So estimate how long you think the new vehicle will last. Let's estimate 100,000 miles. So if you do 10,000 miles per year, and the new car has 30,000 miles on the clock, you can guess it will last seven years. If such a vehicle cost $7,000 that's equivalent to $1,000 per year. If you need to borrow to make the purchase, you'll have to add on interest, of course.



                                      In this scenario, spending $1,000 this year to save $1,226 is certainly worthwhile. In fact, if the new vehicle costs up to $8,500 (7 x $1,226), you'll be better off.



                                      There's obviously lots of estimates involved, but that's the nature of trying to predict the future. When I'm buying a new car, I create a spreadsheet with all this data, including on the existing car, before making my decision. It's quite quick to calculate once the spreadsheet is set up.






                                      share|improve this answer












                                      If all you care about is the math, this is a relatively simple matter to work out.



                                      First, you need to estimate your annual expenditure on your current vehicle, including insurance, fuel and repairs. Let's imagine $500 for insurance, and your $1,470 for repairs. Fuel we'll estimate at 10,000 miles, 22mpg, and $2.87 per gallon, which is $1,304 per year. The total cost is therefore $3,274 per year.



                                      Then, do the same for the replacement vehicle. Let's assume slightly higher insurance ($600), but fewer repairs ($300). Let's say you get a 25mpg vehicle this time, giving a fuel cost of $1,148, and a total cost of $2,048 per year.



                                      The new vehicle should therefore save you around $1,226 per year — however, you have to pay for it!



                                      So estimate how long you think the new vehicle will last. Let's estimate 100,000 miles. So if you do 10,000 miles per year, and the new car has 30,000 miles on the clock, you can guess it will last seven years. If such a vehicle cost $7,000 that's equivalent to $1,000 per year. If you need to borrow to make the purchase, you'll have to add on interest, of course.



                                      In this scenario, spending $1,000 this year to save $1,226 is certainly worthwhile. In fact, if the new vehicle costs up to $8,500 (7 x $1,226), you'll be better off.



                                      There's obviously lots of estimates involved, but that's the nature of trying to predict the future. When I'm buying a new car, I create a spreadsheet with all this data, including on the existing car, before making my decision. It's quite quick to calculate once the spreadsheet is set up.







                                      share|improve this answer












                                      share|improve this answer



                                      share|improve this answer










                                      answered 45 mins ago









                                      Mark Barnes

                                      1547




                                      1547




















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